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<br />Repayment Contract <br /> <br />A preliminary draft of a contract for the repayment of <br />non-federal costs has been received from the Bureau. Such a <br />contract must be executed before construction can start on Stage <br />3 of the project this summer. However, payments from the State <br />will not be needed, at the earliest, until January, 1983. Since <br />$500,000 has already been authorized, an additional appropriation <br />would not be needed until the beginning of FY 1983-84 (July, <br />1983). <br /> <br />The preliminary draft of the contract provides that the <br />State's share of the separable costs allocated to recreation and <br />fish and wildlife enhancement shall be paid under one of the <br />following methods or a combination of methods agreed to between <br />the Bureau and the State: <br /> <br />1. A lump-sum payment of the non-federal separable costs <br />for recreation and fish and wildlife enhancement features prior <br />to starting construction of these facilities. <br /> <br />2. Payment of the State's share of construction <br />expenditures as they are incurred. <br /> <br />3. For facilities in Stage 3, the State may deduct from any <br />repayment to the Bureau the cost or value of lands, or interests <br />therein, or recreation or fish and wildlife facilities <br />constructed and financed by the State at the current appraised <br />value provided these facilities have been approved in advance by <br />the Bureau and are a part of the Master Plan. Title to such <br />facilities shall be transferred and vested in the United States. <br /> <br />4. Repayment in 50 annual installments with interest at a <br />rate to be established in accordance with the authorizing <br />legislation. The first payment would become due and payable on <br />October 1 of the year following the year in which project's <br />recreation and fish and wildlife facilities are, as determined by <br />the Bureau, sufficiently complete to permit the use thereof to <br />handle the initial public visitation without damaging the <br />resource. Subsequent annual payments would become due on October <br />1 of each succeeding year thereafter. Interest would be <br />calculated annually on the unpaid principal balance. <br /> <br />Conclusion <br /> <br />Per the Board's action at its February 5 meeting, I will <br />keep you apprised of contract negotiations as they progress. The <br />final recommeded contract will be made available for the Board's <br />approval at a subsequent meeting. <br /> <br />gl <br /> <br />-2- <br />